XAG / USD struggles at $ 25.00, stable around $ 24.50 as bulls pause

  • XAG / USD: The weekly chart shows that the white metal is tilted higher but will face resistance at $ 25.00.
  • XAG / USD: The daily chart shows an uptrend, but the RSI is aiming for a high level close to overbought levels, indicating that it may consolidate.
  • XAG / USD: The 4 hours show that the bullish move in silver is overstated as the RSI is one tick below the overbought levels.

Silver (XAG / USD) starts the week on a positive tone, climbing 0.97%, trading at $ 24.54 in the New York session at the time of writing. Market sentiment is bullish, illustrated by the rise in US equity indices, recording gains of between 0.12% and 1.01%, unlike US Treasury bond yields, with the 10-year bond rate falling by one and a half basis points to 1.639%.

Meanwhile, the US dollar index, the price of which influences commodity prices, increases 0.24%, currently at 93.83, putting the brakes on silver prices, as it has not exceeded $ 25.00 during Monday’s session.

XAG / USD price prediction: technical outlook

Weekly chart

The white metal is trading above the 38.2% Fibonacci retracement and 100 week simple moving average (WSMA), near month highs. Silver has a bullish bias confirmed by the Relative Strength Index (RSI), a momentum indicator is at 51, aiming higher.

Nonetheless, to continue its bullish movement, XAG / USD buyers will need to break above the 50% Fibonacci retracement at $ 25.10 to recover a medium term bullish bias.

Daily graph

Silver follows the longer term analysis as the daily chart shows the white metal is in an uptrend. The Relative Strength Index (RSI) at 67 confirms the bullish bias, but it is close to overbought levels.

XAG / USD buyers will need a daily close above the 100 day moving average (DMA) at $ 24.52 to gain further strength.

In the event of this outcome, the confluence of 200-DMA and a downtrend line around the $ 25.20 to $ 25.50 range would provide resistance for XAG / USD buyers. A break in the latter could expose additional supply areas, such as the August 4 high at $ 26.00 followed by the July 16 high at $ 26.45.

4 hour graph

Silver is in an uptrend, but it has the challenge of printing another head start above $ 24.82 to extend the rally. The Relative Strength Index (RSI) is at 69, a tick before reaching overbought levels, leading to a phase of consolidation. Nonetheless, if there is a break above the latter, it could extend the rally towards $ 25.00 and beyond.

On the flip side, a failure at the aforementioned level could open the door for XAG / USD to drop to $ 24.20-30 as the RSI breaks out of overbought levels before resuming the uptrend.

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